Pakistan Govt Reduced Tax on Hybrid Vehicles Upto 1%

 Buzz Feedz: Big news for the Pakistani hybrid car market as the fiscal budget for 2023-24 is out. The customs duty on imported hybrid electric vehicles (HEVs) in fully assembled form will now be only 1 percent, the budget documents said. In addition, there is a reduction in customs duty for HEVs imported as completely separate units.

According to the budget document, the customs duty on import of HEV parts in removable units is now 4 percent, while the duty on import of plug-in hybrid electric vehicle (PHEV) parts in removable units is 3 percent. These changes are expected to have a positive impact on the prices of hybrid vehicles in the Pakistani market and encourage new companies to enter the hybrid car industry.

In addition, duties and taxes on vehicles above 1,300 cc manufactured in Asia have been abolished. In addition, the rate of customs duty on import of non-locally manufactured commercial vehicles in the form of partially assembled parts is proposed to be reduced from 10% to 5%.

Overall, these changes are aimed at boosting the hybrid car sector in Pakistan, making hybrid vehicles more affordable and attracting investment in the industry.